Goldman Sachs Upgrades Home Depot, Downgrades Lowe’s (HD, LOW)

Filed in dividend, downgrade, earnings, Gold, goldman sachs, o, shares, target, upgrade by on January 31, 2011 0 Comments

Analysts at Goldman Sachs on Monday downgraded Lowe’s Companies, Inc. ( LOW ), but upgraded rival home improvement warehouse operator The Home Depot, Inc. ( HD ). The firm said it cut its rating on LOW from “Buy” to “Neutral” with a $28 price target. That target implies an 11% upside to the stock’s Friday closing price of $25.25. Goldman noted that a transitional period in Lowe’s management structure could limit the stock’s upside. Meanwhile, the analyst upgraded HD from “Neutral” to “Buy” and boosted its price target from $37 to $42. That new target suggests a 14% upside to the stock’s Friday closing price of $36.70. Goldman also raised its 2010, 2011, and 2012 earnings estimates for Home Depot as part of the upgrade, noting the company has well-planned strategies that could drive further profits. Lowe’s shares fell 26 cents, or -1%, in premarket trading Monday, while Home Depot shares rose 60 cents, or +1.7%. The Bottom Line Shares of Home Depot ( HD ) have a 2.56% dividend yield, based on Friday’s closing stock price of $36.70. Shares of Lowe’s ( LOW ) have a 1.74% dividend yield, based on Friday’s closing stock price of $25.25. Lowe’s Companies, Inc. ( LOW ) and The Home Depot, Inc. ( HD ) are both rated “Neutral,” with both stocks holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list of

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Goldman Sachs Upgrades Home Depot, Downgrades Lowe’s (HD, LOW)

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